There has recently been a discussion about GNU switching from bzip2 to lzma for their distributed tarballs. They still offer gzip tarballs as an alternative. However, Gentoo has been preferring the bzip2 tarballs mostly due to the improved pack ratio of bzip2. Unfortunately, the software for lzma is not (yet) as mature as some would like.
Read more »Gzip, Bzip2 and Lzma compared
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